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GGD-92-23R 1 (1992-08-12)

handle is hein.gao/gaobackcs0001 and id is 1 raw text is: United States GAO General Accounting Office Washington, D.C. 20548 General Government Division August 12, 1992 147318 The Honorable David Pryor Chairman, Subcommittee on Federal Services, Post Office, and Civil Service, Committee on Governmental Affairs United States Senate Dear Mr. Chairman: This letter responds to your request that we review the Social Security Administration's (SSA) household goods transportation pilot program to determine if the program should be implemented governmentwide. We briefed the Subcommittee on the results of our work on July 21, 1992, suggesting that further work on the request be suspended because the original question has become somewhat moot. The Subcommittee agreed, but requested that we summarize the information presented at the briefing in a letter. In 1985, the General Services Administration (GSA) authorized the Social Security Administration to begin a pilot program that allowed the agency to contract with a private firm, PHH Homequity Corporation, to arrange for shipping and storing relocated employees' household goods instead of using the GSA Centralized Household Goods Traffic Management Program which handled all other relocated civilian employees' household goods. Under the pilot program, Homequity is responsible for handling most of the administrative tasks associated with the movement of an employee's household goods. The company is allowed to negotiate rates directly with carriers and use carriers other than those approved for participation in the GSA centralized program and is paid a flat fee by SSA plus a commission by the selected carrier. We set out to compare the costs of household goods shipments under the SSA pilot and the GSA centralized programs. Both agencies had attempted to compare costs and savings, but could not agree on the amounts because of differences in opinions concerning the appropriate tariffs, discounts, and insurance fees for shipments. We did not resolve the differences because later developments as discussed below led us to question whether the information would be useful. GAO/GGD-92-23R, Household Goods Transport 0551 Yj 3

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